Ministry of Foreign Affairs and Trade

There are increasing numbers of Hungarian investors

September 14, 2018 5:43 PM

“It is highly welcome that there are more and more Hungarian investors in the country, and that while in 2016 German and American companies were the largest investors in Hungary, the Hungarians have come up into second place, and during the first half of this year the most investments were realised by Hungarian enterprises”, Minister of Foreign Affairs and Trade Péter Szijjártó said in Miskolc at the inauguration of the new plant constructed by large tool design and manufacturing company Spinto Hungary Limited.

At the inauguration of the new plant, constructed at a cost of of almost six billion forints (EUR 18.5 million) by the automotive supplier, which is owned by Hungarian investors, the Minister of Foreign Affairs and Trade said: “The modern industrial revolution is being directed by the automotive industry, it is dictating the pace, while Hungary can state that the automotive industry provides the backbone of the Hungarian economy”.

“During the first six months of 2018, Hungarian-owned companies invested 100 billion forints (EUR 308 million) in the country and created 1500 new jobs. Today, 4.5 million people have jobs, and the GDP has increased by 20 percent compared to 2010”, Mr. Szijjártó said.

The Minister highlighted the fact that with its 8 trillion forint (EUR 24.62bn) production value, the Hungarian automotive industry broke all previous records last year, and momentum has not come to a halt, because this figure already exceeded 4400 billion (EUR 13.55bn) forints during the first six months of this year.

According to Mr. Szijjártó, over 90 percent of the products manufactured by the Hungarian automotive industry go to export, and international competitiveness is also continuously increasing within the sector, which employs over 167 thousand people. He reminded reporters that BMW has begun construction of its second plant in Kecskemét, Audi will be producing electric motors in Győr, and BMW is building a factory in Debrecen.

The Hungarian Government provided 2.45 billion forints (EUR 7.54 million) in non-returnable funding towards the construction of Spinto Hungary Ltd’s new plant in Miskolc’s southern industrial park. The new automotive industry machine manufacturing plant provides jobs for 140 people. The company is capable of manufacturing tools exceeding 60 tons. According to Managing Director János Pócs, two-thirds of the plant’s products will go to export. Mr. Pócs also told Hungarian news agency MTI that the company plans to realise 15-20 million euros in turnover by 2020.

At the event, Mr. Szijjártó also spoke about the fact that a new world order is in development, with companies competing for consumers and for the technologies that will give them a competitive advantage. At the same time, countries are competing to attract foreign investment, and this international competition is becoming increasingly tough.

He also spoke about the fact that digitalisation is a modern industrial revolution that is bringing with it the everyday use of technologies that were previously though impossible. “Hungary must also stand its ground in this competition”, he underlined.

“We have the lowest taxes in Europe, we have the most flexible labour regulations in Europe, and we have reorganised intermediary education according to the German model, creating the conditions for dual training”, he added. The Hungarian economy is achieving success after success, and this is also the success of all Hungarians. At the same time, investments in Hungary on the part of large foreign corporations are providing many jobs to a large number of small and medium-sized enterprises, he pointed out.

During the first six months of this year, the most investments were realised in Borsod-Abaúj-Zemplén County, and “this is proof of the fact that the eastern half of the country is just as competitive as the western half”, the Minister emphasised.